Singapore, April 7 - Some of the larger cocoa plantations in Indonesia have switched to planting oil palms for higher returns, a senior industry official said Monday.
"Indonesia's cocoa plantations still bear a relatively low yield, especially compared with Malaysia," said Piter Jasman, chairman of the Indonesian Cocoa Industry Association.
Malaysian cocoa plantations yield around 1.5 tons per hectare compared with around 0.6 ton/hectare in Indonesia.
"Cocoa plantations are more prone to pests and disease than palm oil," he added.
This switch could decrease Indonesia's annual output by up to 80,000 tons, or around 15%. Around 85% of Indonesia's cocoa is supplied by smallholders.
The Indonesian Cocoa Association forecasts a harvest of around 590,000 tons this year. Indonesia aims to produce 2 million tons a year of cocoa by 2020.